Global Energy Metals Corporation (CVE:GEMC) (OTCPINK:GBLEF) and Marquee Resources Ltd (ASX:MQR) are discussing terms of a joint-venture deal for the Werner Lake Cobalt Project in Ontario after the companies let a deal lapse that wouldve seen Marquee take a 70% interest.
Back in February 2018, the parties finalized a strategic option agreement that would charge Australia-based Marquee AUD$1 million for a 30% interest in the project in year one and an additional AUD$1.5 million to jump to a 70% interest on or before year two.
Marquee met the 30% threshold but due to a shortfall in project expenditures did not earn its potential 70% stake, GEMC said. The 24-month period to do so has since expired.
The companies have agreed to let the agreement lapse due to market conditions, GEMC said. For now, GEMC owns 70% and Marquee owns 30%. According to GEMC, both parties would prefer for one party to take sole ownership of the project, but acceptable terms have not been reached.
"We value the partnership with Marquee and recognize the extensive project expenditures they made in advancing the Werner Lake project over the past two years,” GEMC CEO Mitchell Smith said in a statement. “The work they completed further confirmed the potential for significant exploration upside at the cobalt and copper-rich project having identified new targets open for exploration. We leave the door open for further cooperation with Marquee or other groups that see the opportunity for the advancement of the past-producing primary cobalt project."
Marquee extensively tested the exploration potential at Werner Lake over the past two years. The company confirmed high-grade cobalt mineralisation intersected in numerous drill holes during previous diamond drilling programs and provided additional structural and geotechnical data for ongoing project development studies.